462 THE IRON INDUSTRY.
pectation of a virtual monopoly of existing supplies by the direct control of steel companies, has resulted in extensive prospecting and in the establishment of very high prices for ore lands. In many cases silicious ores have been purchased which would not have been considered at all a few years ago. In some cases these silicious ores are used in admixture with purer ores, both of the old ranges and of the Mesabi district. A very moderate output of highly silicious ores, however, will satisfy demands of this character, and the cost of transportation and of extra fuel will work against the use of ihese impure deposits. Attempts have been made to develop extensive deposits of titaniferous ores, but such mineral cannot be regarded as marketable, owing to the difficulty in smelting.
In other parts of the world iron ore is sold at a certain price per ton, and the purchaser runs the risk of variations in the composition. In Lake Superior products a sliding scale is used, the selling price depending on the iron and phosphorus. Following is the clause as written into all ore contracts:
"The price of this ore is named and accepted on the expectation
that the ore will average'......per cent, in metallic iron and
......one-thousandths of one per cent, in phosphorus, dried at
212° F. Taking this as a standard of quality, it is agreed that only a total average variation therefrom of more than one-half of one per cent, in metallic iron (and in such case the entire average variation) shall be entitled to recognition and adjustment by increase
or abatement in price, as the case may be, at the rate of.......cents
per unit per ton for metallic iron. And in case of excess of phosphorus over and above the agreed quantity, settlement shall be made according to the table of phosphorus values attached hereto."
The phosphorus table is different in Bessemer and non-Bessemer ores. In Bessemer ores the base is .045 per cent. For a lower content a higher price is paid, and for a higher content a lower price. The scale is as follows, the figures representing the difference in cents on one ton of ore:
.045=base. ,040=4-| cents more.
.050=4£ cents less. .035=10£ cents more.
.055=10:1 cents less. .030=17^ cents more.
.060=17^ cents less. . .025=25£ cents more.
.065=25^ cents less. .020=35 cents more.
.070=35 cents less.